U.S. Business Leaders 'Bullish' Taiwan Will Still Acquire Drones - Domino Theory
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Taiwan's drone budget saga is a live case study in signaling theory — where what a government says it will do matters as much as what it actually buys.
Signaling TheoryPrincipal-Agent ProblemOptimism BiasDeterrence Theory
Theory Briefing
- Taiwan's Lai administration plans to resubmit a drone acquisition budget, but has offered no clear rationale for why it will succeed this time.
- U.S. business leaders remain bullish on the deal closing — a textbook case of optimism bias overriding weak institutional signals.
- The gap between stated defense intent and legislative follow-through illustrates a classic principal-agent problem between Taiwan's executive and its parliament.